The value of Stanley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than 80 years
Leasehold properties in Stanley with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Stanley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her purpose-built apartment in Stanley, Isabella started the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in June 2012. The landlord’s costs were restricted to under 450 pounds.
Last month we were called by Mrs Jasmine Robinson , who took over the lease of a newly refurbished apartment in Stanley in June 2007. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Stanley with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 26 March 2098. Given that there were 73 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Autumn we were e-mailed by Mr and Mrs. W Wright , who bought a first floor apartment in Stanley in January 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Stanley with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed on 21 June 2078. Given that there were 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of legals.